Swiss Banks Comply with Strict Sanctions Amid Ukraine War Tensions

The Swiss banking sector is adhering to strict compliance with national, international and supranational regulations and sanctions, with a primary focus on measures related to the ongoing war in Ukraine.

Compliance with Regulations and Sanctions

The Swiss Confederation has the authority to impose compulsory measures to enforce United Nations, Organisation for Security and Cooperation in Europe, and significant trading partner sanctions aimed at securing compliance with international law and human rights. The Federal Council is responsible for enacting such measures, which are crucial in maintaining Switzerland’s integrity and reputation as a financial hub.

Combating Money Laundering

Switzerland has implemented a robust apparatus to combat money laundering, featuring extensive due diligence and reporting requirements. This ensures that the country maintains its status as a safe and secure financial center.

Five Guiding Principles for Sanctions Policy

In response to the current situation, the Swiss Bankers Association (SBA) has developed five guiding principles to address the challenges of Switzerland’s sanctions policy. These principles aim to ensure an effective and compliant sanctions regime that respects the rule of law:

• Transparency: Ensuring clear communication with customers and stakeholders
• Compliance: Adhering to national, international, and supranational regulations and sanctions
• Risk Management: Identifying and mitigating potential risks associated with sanctioned entities
• Information Sharing: Collaborating with authorities and peers to share information and best practices
• Adaptability: Continuously reviewing and updating policies and procedures in response to changing circumstances

Implementing EU Sanctions against Russia

Recently, the Federal Council adopted the European Union’s sanctions against Russia on February 28, 2022, strengthening their impact. The SBA is closely collaborating with authorities to implement these sanctions and provides its members with a platform for information sharing and knowledge exchange.

For further information on Switzerland’s sanctions against Russia, please refer to the State Secretariat for Economic Affairs’ (SECO) FAQ webpage.